Novartis Heart-Trial Failure Could be Mitigated by Investor Caution

Dow Jones
09/07

0703 GMT - An experimental Novartis medicine missed the target in a late-stage clinical trial, but the hit to the Swiss drugmaker's share price could be mitigated by investors' skepticism about the study, analysts at Citi say in a research note. The drug, pelacarsen, reduced the levels of a fatty particle in the blood known as Lp(a), but this didn't translate to clinical outcomes, Citi says. "We think market expectations of a positive trial were already cautious, with question marks around the magnitude of benefit and difficulty in commercialization even if the study had met the endpoint, which we think could limit the impact of the trial failure on the share price," the analysts say.

 

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